Khazanah not concerned about call-off in merger

CIMB Group Holdings Bhd's major shareholder, Khazanah Nasional Bhd, is not concerned about the call-off in the merger and believed in the corporate governance of the bank.

Khazanah managing director, Tan Sri Azman Mokhtar, said there will be other chances for CIMB to merge in the future once the bank found a good opportunity.

"CIMB has, over the years, proven its ability to not just acquire but also integrate," he told reporters at Khazanah 11th Annual Review here today.

He said the market has also accepted the decision positively as seen in the bank's share price which increased by between 13 and 14 percent since the potential merger call-off news emerged.

CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd announced today that they have ceased discussions on the proposed merger and creation of a mega Islamic bank in light of the current economic conditions.

CIMB Group and RHB Capital have withdrawn their applications to Bank Negara Malaysia, and the exclusivity agreement entered into by the parties has been terminated with the cessation of talks.